<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended: NOVEMBER 30, 1995
[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ______________
Commission File Number: 0-17988
NEOGEN CORPORATION
(Exact name of small business issuer as specified in its charter)
MICHIGAN 38-2367843
(State or other jurisdiction of (IRS employer
incorporation or organization) Identification No.)
620 LESHER PLACE, LANSING, MICHIGAN 48912
(Address of principal executive offices)
(517)372-9200
(Issuer's telephone number)
NONE
(Former name, former address and former
fiscal year, if changed since last report.)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days.
Yes x No___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 after
distribution of securities under a plan confirmed by a court.
Yes___ No___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practical date.
4,538,960 WERE OUTSTANDING ON JANUARY 1, 1996
<PAGE> 2
INDEX
NEOGEN CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Interim Financial Statements (unaudited)
Consolidated balance sheets--November 30, 1995 and May 31, 1995.
Consolidated statements of operations--Three months ended November 30, 1995
and 1994; six months ended November 30, 1995 and 1994.
Consolidated statements of stockholders' equity--Six months ended November
30, 1995 and 1994.
Consolidated statements of cash flows--Six months ended November 30, 1995
and 1994.
Notes to consolidated financial statements--November 30, 1995.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes In Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. INTERIM FINANCIAL STATEMENTS
<PAGE> 4
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
NEOGEN CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
November 30 May 31
1995 1995
-----------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and equivalents $ 1,505,078 $ 2,237,979
Net accounts receivable 2,055,332 1,681,200
Inventories 3,974,539 3,806,872
Other current assets 381,530 355,027
------------ ------------
TOTAL CURRENT ASSETS 7,916,479 8,081,078
NET PROPERTY AND EQUIPMENT 1,407,146 1,312,670
INTANGIBLE AND OTHER ASSETS
Goodwill, net of accumulated amortization 2,084,802 1,513,032
Other assets, net of accumulated
amortization 622,443 631,826
------------ ------------
$ 12,030,870 $ 11,538,606
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable and current maturities
of long-term notes payable-(Note D) $ 1,438,176 $ 1,146,082
Accounts payable 753,577 742,652
Accrued compensation and benefits 255,177 338,407
Other accrued liabilities 60,354 65,129
------------ ------------
TOTAL CURRENT LIABILITIES 2,507,284 2,292,270
LONG-TERM NOTES PAYABLE-(NOTE D) 314,492 351,233
OTHER LONG-TERM LIABILITIES 58,671 58,671
STOCKHOLDERS' EQUITY
Common stock:
Par value $.16 per share, 10,000,000
shares authorized, 4,527,960 shares
issued at November 30, 1995; 4,460,027
shares issued at May 31, 1995 724,473 713,604
Additional paid in capital 13,637,930 13,592,684
Retained-earnings deficit (5,211,980) (5,469,856)
------------ ------------
9,150,423 8,836,432
------------ ------------
$ 12,030,870 $ 11,538,606
============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE> 5
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
NEOGEN CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended November 30 Six Months Ended November 30
1995 1994 1995 1994
------------------------------ ----------------------------
<S> <C> <C> <C> <C>
REVENUES
Sales $ 3,198,887 $ 2,849,242 $ 6,046,466 $ 5,418,066
Contract revenues 36,228 73,602 114,293 129,447
----------- ----------- ----------- -----------
3,235,115 2,922,844 6,160,759 5,547,513
EXPENSES
Cost of goods sold 1,374,541 1,285,473 2,556,779 2,341,168
Sales and marketing 920,955 797,322 1,779,509 1,569,494
General and adm. 460,446 404,502 891,743 739,480
Research and develop. 348,207 281,577 669,542 565,411
----------- ----------- ----------- -----------
3,104,149 2,768,874 5,897,573 5,215,553
----------- ----------- ----------- -----------
INCOME FROM OPERATIONS 130,966 153,970 263,186 331,960
OTHER INCOME (EXPENSE)
Interest income 14,926 21,093 33,317 44,993
Interest expense (39,364) (25,823) (75,740) (32,100)
Other 26,710 33,627 50,713 33,627
----------- ----------- ----------- -----------
2,272 28,897 8,290 46,520
----------- ----------- ----------- -----------
INCOME BEFORE
INCOME TAXES 133,238 182,867 271,476 378,480
INCOME TAXES 6,400 7,200 13,600 14,400
----------- ----------- ----------- -----------
NET INCOME $ 126,838 $ 175,667 $ 257,876 $ 364,080
=========== =========== =========== ===========
NET INCOME PER
SHARE (NOTE B) $ 0.03 $ 0.04 $ 0.06 $ 0.08
=========== =========== =========== ===========
</TABLE>
See notes to consolidated financial statements.
<PAGE> 6
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
NEOGEN CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Common Stock
--------------------- Additional Retained-
Number Paid-In Earnings
of Shares Amount Capital Deficit
--------- ------ ------- -------
<S> <C> <C> <C> <C>
Balance at June
1, 1995 4,460,027 $ 713,604 $ 13,592,684 $ (5,469,856)
Exercise of warrants 39,933 6,389 118,601
Exercise of options 28,000 4,480 51,635
Note receivable
related to issuance
of common stock (124,990)
Net income for the
six months ended
November 30, 1995
257,876
--------- --------- ------------ -------------
Balance at November 30,
1995 4,527,960 $ 724,473 $ 13,637,930 $ (5,211,980)
========= ========= ============ =============
Balance at June 1,
1994 4,329,729 $ 692,757 $ 13,108,815 $ (6,148,563)
Common shares issued
in connection with
acquisitions 55,753 8,920 316,080
Exercise of warrants 40,020 6,403 121,446
Exercise of options 29,325 4,692 37,101
Net income for the
six months ended
November 30, 1994 364,080
--------- --------- ------------ -------------
Balance at November
30, 1994 4,454,827 $ 712,772 $ 13,583,442 $ (5,784,483)
========= ========= ============ ==============
</TABLE>
See notes to consolidated financial statements.
<PAGE> 7
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
NEOGEN CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Six Months Ended November 30
1995 1994
------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 257,876 $ 364,080
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 264,353 221,035
Gain on sale of fixed assets (13,688)
Changes in operating assets and
liabilities:
Accounts receivable (374,132) (384,795)
Inventories (135,131) (756,378)
Other current assets (26,503) (117,813)
Accounts payable 10,925 82,672
Other accrued expenses (88,005) (268,705)
----------- ----------
NET CASH USED IN
OPERATING ACTIVITIES (90,617) (873,592)
INVESTING ACTIVITIES:
Purchases of property and equipment
and other assets (273,696) (111,559)
Proceeds from sale of fixed assets 155,163
Acquisition of business (Note C) (680,056) (817,957)
----------- ----------
NET CASH USED IN
INVESTING ACTIVITIES (953,752) (774,353)
FINANCING ACTIVITIES:
Proceeds on short-term borrowings 300,000 621,945
Proceeds on long-term borrowings 400,000
Payments on long-term borrowings (44,647) (561,413)
Proceeds from issuance
of common stock 56,115 169,642
----------- ----------
NET CASH PROVIDED FROM
FINANCING ACTIVITIES 311,468 630,174
----------- ----------
DECREASE IN CASH (732,901) (1,017,771)
Cash at beginning of period 2,237,979 3,006,941
----------- ----------
CASH AT END OF PERIOD $ 1,505,078 $1,989,170
=========== ==========
</TABLE>
See notes to consolidated financial statements
<PAGE> 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NEOGEN CORPORATION AND SUBSIDIARIES
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and Item
310 of Regulation S-B. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) considered necessary for a fair
presentation have been included. Certain amounts in the 1994 Unaudited
Consolidated Financial Statements have been reclassified to conform to the 1995
presentation. The results of operations for the six months ended November 30,
1995 are not necessarily indicative of the results to be expected for the
fiscal year ending May 31, 1996. For more complete financial information,
these consolidated financial statements should be read in conjunction with the
May 31, 1995 audited consolidated financial statements and the notes thereto
included in the Company's annual report on Form 10-KSB for the year ended May
31, 1995.
NOTE B - NET INCOME PER SHARE
The net income per share amounts for 1995 and 1994 are based on the weighted
average number of common shares outstanding adjusted to reflect the assumed
exercise of outstanding stock options and warrants, to the extent these items
had a dilutive effect on the computations.
NOTE C - ACQUISITIONS
Effective June 15, 1995, Neogen acquired certain assets of International
Diagnostic Systems Corp. (IDS) of St. Joseph, Michigan. The acquisition was
accounted for by the purchase method and all acquired assets, consisting of
inventory and related research and technology for 35 different diagnostic tests
used to detect drugs of abuse in animals, were moved to the Company's ELISA
Technologies division in Lexington, Kentucky.
The purchase price consisted of initial consideration of approximately $680,000
paid in cash at closing. Additional consideration may be paid, contingent upon
sales performance for the twelve month period ending June 14, 1996.
NOTE D - NOTES PAYABLE
On August 29, 1995, Neogen and its wholly-owned subsidiary, AMPCOR Diagnostics,
Inc. (AMPCOR), signed a new master revolving note payable to Comerica Bank
which increased AMPCOR's line of credit facility to $1,000,000 from $600,000.
The note bears interest at .75% over the prime rate (9.50% at November 30,
1995) and is collateralized by substantially all assets of Neogen and AMPCOR.
Borrowings against AMPCOR's line of credit were $608,946 at November 30, 1995
and $508,946 at May 31, 1995.
<PAGE> 9
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
THREE MONTHS ENDED NOVEMBER 30, 1995 COMPARED TO THREE MONTHS ENDED NOVEMBER
30, 1994.
Total revenues for the quarter ended November 30, 1995 were $312,000 or 11%
higher than the same quarter in 1994. A 30% increase in sales of predictive
and diagnostic products was partially offset by a 15% decline in veterinary
instrument sales and lower research revenues in the second quarter.
Of the $517,000 increase in sales of predictive and diagnostic products,
$306,000 was the result of a 29% increase in sales of diagnostic test kits to
detect harmful mycotoxin residues in the feed, grain, and nut markets. The
remaining increase of $211,000 is principally due to a 43% increase in sales of
diagnostic kits for the horse racing and pharmacologic markets.
Veterinary instrument sales were down $167,000 in the second quarter, primarily
due to depressed cattle prices which have resulted in lower demand for durable
veterinary instruments.
Contract revenues decreased $38,000 compared to last year due to the scheduled
completion of two research contracts at the beginning of the second quarter.
It is common for contract revenues to fluctuate from quarter to quarter and
year to year depending on the timing and terms of the contracts.
The increase in cost of goods sold for the second quarter is a direct result of
the overall increase in product sales. Expressed as a percentage of revenues,
cost of goods sold improved to 42% compared to 44% in the prior year due
primarily to a higher mix of predictive and diagnostic products.
Sales and marketing expenses increased $124,000 or 16% in the three months
ended November 30, 1995 compared to the same period in 1994. Approximately
$67,000 of this increase is related to salary, fringe, travel, printing,
advertising, and promotion expenses principally associated with the Company's
introduction of new diagnostic kits for the meat and poultry market. Another
$42,000 of the increase pertains to similar categories of expense related to
introduction of new products to the seafood and equine markets. The remaining
increase is primarily due to higher commissions and royalties ($29,000) and
promotional programs ($23,000) for sales of mycotoxin diagnostic test kits,
offset to a large degree by lower commissions paid on veterinary instrument
sales.
General and administrative expenses were $55,000 or 14% higher in the second
quarter of 1995 than last year. The primary increases in expense were $35,000
for salaries and fringe costs partially due to new secretarial and accounting
personnel as a result of increased business volume; $10,000 for higher costs
associated with investor relations, and $10,000 of increased amortization
expense as a result of the acquisition of certain assets of International
Diagnostic
<PAGE> 10
Systems Corp. (See Note C to Unaudited Consolidated Financial Statements.)
The $67,000 increase in research expense for the second quarter is mostly due
to ongoing research programs in two separate areas. The Company incurred
$33,000 in higher expense for salaries, fringe, and supplies related to the
development of new diagnostic kits and reagents to be sold to the pharmacologic
and equine markets. Another $30,000 of the increase was for higher salaries,
fringe, and supplies incurred as part of research efforts to develop new
diagnostic test kits for the detection of harmful bacteria. Management
believes research and development is critical to the Company's future and
expects to continue the investment in research during the remaining two
quarters of the current fiscal year.
Interest income declined in the second quarter due to lower cash balances
available for investment. Interest expense increased as a result of higher
rates and increased borrowings compared to the second quarter in 1994.
SIX MONTHS ENDED NOVEMBER 30, 1995 COMPARED TO SIX MONTHS ENDED NOVEMBER 30,
1994.
Total revenues for the six months ended November 30, 1995 were 11% higher than
for the same period in 1994. Sales of predictive and diagnostic products for
this period were $874,000 or 24% higher than the prior year. Veterinary
instrument sales for the first six months declined $246,000 or 13%.
Of the $874,000 increase in predictive and diagnostic product sales,
approximately $185,000 was the result of including a full six months of sales
for AMPCOR Diagnostics, Inc. (ADI) in 1995 whereas the first six months in 1994
included only four months of sales for ADI. Sales of diagnostic tests to
detect mycotoxins increased $386,000 and the remaining increase for this
segment was due to increased sales of diagnostic test kits for the equine and
pharmacologic markets.
Cattle prices have declined significantly over the last six months resulting in
a lower demand for veterinary instruments including durable syringes,
obstetrical products, and balling guns. Management believes targeted
promotions for specific instruments, along with the planned introduction of new
products, will help increase sales in this segment for the second half of this
fiscal year. The decline in sales of veterinary instruments has had very
little impact on profitability through the first six months due to cost
conservation measures implemented by the Company.
As a percent of revenues, cost of goods sold was 42% for both 1995 and 1994.
The overall $216,000 or 1% increase in cost of goods sold is the direct result
of increased sales volume for the six months ended November 30, 1995 compared
to the same period in 1994.
Sales and marketing expenses increased $210,000 or 13% in the first six months
compared to last year. Of this amount, $30,000 was due to six months of
operations for ADI this year compared to four months
<PAGE> 11
last year. Entry into the meat and poultry market resulted in approximately
$115,000 of increased expense spread across a number of categories including
salaries, fringe, travel, printing, advertising, and trade shows. Increases in
cost for the same expense categories totaled $70,000 related to the
introduction of new products for the seafood and equine markets. Neogen
intends to expand its sales and marketing activities for predictive and
diagnostic products, particularly in the meat and poultry and seafood markets.
Sales and marketing expenses for the feed, grain, and nut markets were up
approximately $90,000 during the first six months with most of the increase in
the areas of travel ($8,000), advertising and special promotions ($40,000),
freight costs ($20,000) and telephone expense ($10,000). Selling expense for
veterinary instruments declined $100,000 in the first six months primarily due
to lower commission expense.
General and administrative expense for the first six months was $152,000 higher
than for the same period last year. A total of $60,000 of the increase was the
result of higher costs at ADI due to two extra months of operations in the
current year compared to last year. Salaries and fringe expense was
approximately $50,000 more than last year with $35,000 of this amount due to
new secretarial and accounting personnel as a result of increased business
volume. Increases in other expense categories for the first six months
included $10,000 for supplies related to increases in overall employment levels
and $20,000 of increased amortization expense due to the acquisition of certain
assets of International Diagnostic Systems, Corp. (See Note C to Unaudited
Consolidated Financial Statements.)
The $104,000 increase in research and development cost is partially due to
$44,000 of added expense this year because of an extra two months of operations
at ADI compared to last year. The remainder of the increase is the result of
higher salaries, fringe, and supplies for research programs to develop new
diagnostic test kits for the equine and pharmacologic markets and for the
detection of harmful bacteria. Neogen considers investment in research
activities critical to the long-term future of the business.
Other income in the first six months declined $38,000 principally due to higher
interest expense as a result of higher rates and increased borrowings.
Net income for the first six months declined to $.06 per share compared to $.08
per share last year. Net income for this year has been impacted by the
company's ongoing investment in research programs for several new diagnostic
tests as well as scale-up in sales and marketing activities for entry into the
seafood and meat and poultry markets. The effect of these programs are most
evident at Neogen's AMPCOR Diagnostics subsidiary where losses for the second
quarter and year-to-date are $.03 per share and $.06 per share, respectively,
worse than last year. Management believes this investment is both necessary
and worthwhile due to the significant future sales potential that exists in
these markets.
<PAGE> 12
FINANCIAL CONDITION AND LIQUIDITY
At November 30, 1995, the Company had $1,505,000 in cash and equivalents,
working capital of $5,409,000, and stockholders' equity of $9,150,000. In
addition, the Company has bank lines of credit totaling $2,500,000 with
$1,359,000 borrowed against these lines as of November 30, 1995. Cash and
equivalents declined $734,000 during the first six months primarily as a result
of the acquisition of assets of International Diagnostic Systems Corp. (See
Note C to Unaudited Consolidated Financial Statements.)
Effective June 15, 1995, Neogen acquired certain assets of International
Diagnostic Systems Corp. of St. Joseph, Michigan. The purchase price paid was
approximately $680,000 in cash.
During the first six months ended November 30, 1995, accounts receivable
increased $374,000 with higher balances at all of the Company's operations.
All of the increase occurred in the month of November when Neogen experienced
its highest sales month of the year and had fewer working days for collections.
Inventories at November 30, 1995 were $168,000 or 4% higher than May 31, 1995
partially due to increased sales volume and partially due to inventory levels
for new products introduced during the first six months of the current fiscal
year.
The increase in goodwill at November 30 compared to May 31 is the direct result
of the acquisition of certain assets of International Diagnostic Systems, Corp.
The decrease in accrued compensation and benefits at November 30 compared to
May 31 is due to payment in the first quarter of bonuses and commissions earned
and accrued prior to May 31, 1995.
The Company borrowed $300,000 on its bank lines of credit during the first six
months primarily to fund working capital needs at ADI and for veterinary
instruments. The Company also made scheduled payments on long-term debt
totaling $45,000. Neogen expended approximately $274,000 in the first six
months for additions to property, equipment, and other assets. At November 30,
the Company has no material commitments for capital expenditures. Inflation
and changing prices are not expected to have a material effect on the Company's
operations.
During the second quarter, the company received a $125,000 demand note, bearing
interest at the rate of 10% per annum, executed in connection with the exercise
of warrants to purchase 39,933 shares of the Company's common stock. Neogen
expects to collect the note, including interest, during its third fiscal
quarter.
Neogen has been profitable for eleven consecutive quarters and has generated
positive cash flows from operations during this period. Management believes
that the Company's existing cash and equivalents at November 30, 1995, along
with its available bank lines of credit and expected future increases in
product sales, will be sufficient to fund activities for 1996 and 1997.
However, cash and equivalents have
<PAGE> 13
declined in the last two years as a result of acquisitions made by the Company.
In addition, existing cash and equivalents may not be sufficient to meet the
Company's longer term cash requirements to commercialize products currently
under development or its plans to acquire additional technology and products
that fit within the Company's mission statement. Accordingly, the Company may
be required to issue equity securities or enter into other financing
arrangements for a portion of the Company's future capital needs.
<PAGE> 14
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit Index
Exhibit 4 - Instruments defining the rights of security
holders - incorporated by reference from Exhibit 3(a) (2) of
the Second Amendment to the Form S-18 Registration Statement
filed on August 22, 1989.
Exhibit 11 - Statement regarding computation of earnings per
share.
Exhibit 27 - Financial Data Schedule
(b) Reports On Form 8-K Filed In Quarterly Period Ended November 30, 1995.
The Company did not file any reports on Form 8-K in the
quarterly period ended November 30, 1995.
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEOGEN CORPORATION
January 11, 1996 /s/ James L. Herbert
- -------------------------- --------------------------------
Date James L. Herbert
President
January 11, 1996 /s/ Lon M. Bohannon
- -------------------------- --------------------------------
Date Lon M. Bohannon
Vice President-Chief Financial Officer
<PAGE> 16
EXHIBIT INDEX
Exhibits Filed Herewith
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
11 Statement Regarding Computation Of Earnings Per Share
27 Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 11
(11)--STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
NEOGEN CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended November 30 Six Months Ended November 30
1995 1994 1995 1994
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Weighted average common
and common equivalent
shares outstanding:
Average shares
outstanding 4,490,951 4,449,602 4,475,592 4,407,441
Net effect of dilutive
stock warrants--
based on the treasury
stock method using
average market price
which is greater than
quarter-end market
price 33,487 67,975 33,274 63,989
Net effect of dilutive
stock options--based
on the treasury stock
method using average
market price which is
greater than quarter-end
market price 152,422 210,067 157,911 201,688
---------- ---------- ---------- ---------
TOTALS 4,676,860 4,727,644 4,666,777 4,673,118
========== ========== ========== =========
Net income $ 126,838 $ 175,667 $ 257,876 $ 364,080
========== ========== ========== ==========
Net income per share $ 0.03 $ 0.04 $ 0.06 $ 0.08
========== ========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Neogen
Corporation Form 10-QSB for the quarter ended November 30, 1995 and is qualified
in its entirety by reference to such Form 10-QSB.
</LEGEND>
<CIK> 0000711377
<NAME> NEOGEN CORPORATION
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1995
<PERIOD-START> JUN-01-1995
<PERIOD-END> NOV-30-1995
<CASH> 1,505,078
<SECURITIES> 0
<RECEIVABLES> 2,246,528
<ALLOWANCES> 191,196
<INVENTORY> 3,974,539
<CURRENT-ASSETS> 8,041,469
<PP&E> 3,851,526
<DEPRECIATION> 2,444,380
<TOTAL-ASSETS> 12,155,860
<CURRENT-LIABILITIES> 2,507,284
<BONDS> 0
0
0
<COMMON> 724,473
<OTHER-SE> 8,550,940
<TOTAL-LIABILITY-AND-EQUITY> 12,155,860
<SALES> 6,046,466
<TOTAL-REVENUES> 6,160,759
<CGS> 2,556,779
<TOTAL-COSTS> 5,897,573
<OTHER-EXPENSES> (84,030)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 75,740
<INCOME-PRETAX> 271,476
<INCOME-TAX> 0
<INCOME-CONTINUING> 257,876
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 257,876
<EPS-PRIMARY> .06
<EPS-DILUTED> .06
</TABLE>
